A friend spent $500 for a policy to cover her daughter’s $50,000 destination wedding. Her primary concern was the weather, which cooperated. However, the flowers never showed up nor did the limousine. My friend used the policy to claim the deposit money for both services when she could not recover her deposits from the companies.
Parents concerned about a relationship souring before the exchange of vows can purchase a “change of heart” policy. That’s been available since 2007, but the fraud rate soared in the early years as policies were bought for couples who were known to be fighting. Today that coverage only applies if the bride or groom cancels the wedding more than nine months beforehand. Insurance can cover losses from issues ranging from bankrupt wedding halls to cancellations forced by unexpected military deployments. Company spoke-persons say the majority of claims arise through problems with vendors – especially photographers and videographers.
Parents are purchasing this coverage to protect a major investment. Insurance companies see it as a way to connect with a couple who might later think of the company for home insurance and other life milestones.
Insurers say the sale of these policies has grown steadily. Will we someday see insurance policies issued to pay in the event of divorce?
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